The resource-based view of firm implies that:
A)The boundaries of the firm are determined by the firm's resources rather than by transaction costs
B)The resources of the firm are the foundation for its capabilities
C)Resources and capabilities are the principal basis for firm strategy and the primary source of profitability
D)Ricardian rents are a more important source of firm profitability than monopoly rents Schumpeter

Question

Quizplus · Accepted Answer

The resource-based view of the firm suggests that a firm's resources and capabilities are its principal basis for strategy and primary source of profitability. This means that a firm's competitive advantage is largely based on the resources it possesses and how it uses those resources to create value for customers. The resource-based view also suggests that these resources and capabilities are not easily replicated by competitors, leading to sustained competitive advantage. Choices A, B, and D are not encompassing enough to address the full implications of the resource-based view.

The Resource-Based View of Firm Implies That